Not for the first time, a prominent eVTOL aircraft developer has become the target of a short-selling report aimed at undermining its credibility with investors. Back in February 2021, Wolfpack Research triggered an acrimonious dispute (and apparently unresolved lawsuit) when it challenged China’s EHang. Just over 12 months later, on March 14, Iceberg Research published a report arguing that Germany’s Lilium is “the losing horse in the eVTOL race.”
Iceberg released the report on the day that a large portion of Lilium’s shares were “unlocked” following its September 2021 Wall Street initial public offering based on the company’s combination with special purpose acquisition company Qell. The report concludes that Lilium’s cash reserves will support its development work for only another 18 months.
The main thrust of Iceberg’s beef concerns Lilium's expectation that its seven-passenger Lilium Jet, with its fixed-wing and ducted fan propulsion system, will be able to fly routes of up to 155 miles. That expectation reflects unrealistic assessments of available batteries, according to Iceberg, which also maintains that Lilium is falling far behind on a timeline for achieving type certification and that claimed commercial support from Brazilian airline Azul does not amount to an assured revenue stream.
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